Gaylord man sentenced to 1 year in prison for filing false tax return

June 16, 2009|By Michael Jones, Staff Writer

BAY CITY - Gaylord businessman Peter J. Arndt, 53, was sentenced Thursday to one year and a day in federal prison after pleading guilty earlier this year to one count of willfully filing a false federal income tax return for 2001.

United States District Court Judge Thomas L. Ludington, who had accepted Arndt’s guilty plea in March, presided over Thursday’s sentencing. The case was prosecuted by Assistant U.S. Attorney Robert W. Haviland from Flint.

Arndt’s attorney, Robert J. Dunn of Bay City, said his client is expected to voluntarily report to begin serving his sentence at a date not yet specified.

“We had hoped for no jail time so he could keep his job and make full restitution,” Dunn said.

“It’s sad overall because otherwise he represents a great asset to his community,” Dunn continued. “I think most people underreport their income - unfortunately he got caught.”

Advertisement

Records from United States District Court in Bay City indicate Arndt had originally been indicted in October on five counts of underreporting his income as a real estate appraiser from 1998 to 2002, earning “substantial income.” During those years he reportedly failed to file his federal income tax returns.

In 2004, as part of divorce proceedings, he was directed to submit tax returns for those years. Arndt prepared but deliberately failed to advise his return preparer of the full amount of his gross income from his business. During those years the tax loss to the Internal Revenue Service totaled $117,433.

In exchange for his guilty plea, the other four counts against Arndt were dismissed.

Willfully filing a false federal income tax return, signed under penalty of perjury, carries a maximum penalty of three years imprisonment and a fine of $250,000.

Arndt remains free on a $75,000 bond while waiting to begin serving his sentence.

— Note: Peter Arndt has no connection with Kenneth R. Arndt & Associates Inc. and has never been associated with Kenneth R. Arndt & Associates.